India is emerging as a global leader in clean energy, with non‑fossil sources making up 51.93 percent of its installed power capacity by the end of 2025, according to the International Renewable Energy Agency’s Renewable Energy Statistics 2025.
The country now ranks fourth worldwide in total installed renewable capacity, a milestone that aligns with its second Nationally Determined Contribution target.
Green hydrogen takes centre stage in the energy plan
The National Green Hydrogen Mission, launched to expand the role of hydrogen produced from renewable power, sets a goal of 5 million metric tonnes per year by 2030. So far, 862,000 tonnes of production capacity have been allocated to 18 firms, and 15 companies have secured 3,000 MW of electrolyser manufacturing capacity.
Green hydrogen is being positioned as a solution for sectors where direct electrification is difficult. It can replace fossil‑derived inputs in petroleum refining, fertilizer manufacturing, steel production, and in transport modes such as long‑haul trucks, railways, and ships. The Indian Railways recently demonstrated a hydrogen‑fuelled train, showing a practical use case for the technology.
In the fertilizer sector, data shows an aggregate procurement capacity of 724,000 metric tonnes per year of green ammonia, priced at around $55.75 per kilogram.
Five pilot projects involving both public and private producers are testing hydrogen‑based iron reduction under Indian operating conditions. These pilots aim to gauge how green hydrogen performs in real‑world industrial settings.
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International cooperation fuels hydrogen ambitions
The strategy extends beyond domestic needs, seeking to shape the emerging global market for low‑carbon fuels. The country has engaged in voluntary cooperation under Article 6 of the Paris Agreement, signaling an intent to influence future trade rules and supply chains for green hydrogen.
At the 2024 World Hydrogen Summit in Rotterdam, India debuted its first pavilion, marking a formal entry into the international hydrogen community.
Collaboration with the European Union through the EU‑India Trade and Technology Council has generated more than 30 joint proposals on hydrogen production from waste.
Bilateral talks with the United Kingdom focus on standardising hydrogen metrics, while German partners are exploring market‑based mechanisms and joint tender designs for export.
Indian firms have also signed long‑term offtake agreements with Japanese companies for green ammonia and green methanol, highlighting the commercial appeal of these products.
These partnerships suggest a broader vision: the nation aims not only to meet its own decarbonisation targets but also to become a supplier of clean fuels to other economies.
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While the scale of ambition is clear, the path forward will require careful coordination between policy, industry, and finance.
The government’s emphasis on linking green hydrogen to concrete industrial use cases reflects an attempt to avoid the pitfalls of projects that look good on paper but falter in execution.
Still, the sheer number of initiatives—ranging from port‑based hubs to cross‑border agreements—means that oversight will be a challenge, especially as the sector matures.
If early pilots prove economically viable, they could unlock larger investments and accelerate the transition of hard‑to‑abate sectors.
India’s proactive stance on solar energy has already set a precedent for the global south, demonstrating that large‑scale renewable deployment can be achieved alongside development goals.
The current drive in green hydrogen could have a similarly positive ripple effect, encouraging other emerging economies to adopt comparable strategies.
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